Zionsville Town Council OKs bond ordinance for Hy-Vee project


Plan Commission approves primary plat, development plans

Town leaders in Zionsville have approved a bond ordinance for a mixed-use development project that will bring a Hy-Vee grocery store and multi-family residential units to Whitestown Parkway.

The Iowa-based grocery store announced in January that it planned to build a 150,000-square-foot facility on vacant land on the southwest corner of Whitestown Parkway and S. County Road 700 E. The town council heard from Matt Price, an attorney with the Indianapolis-based Dentons Bingham Greenebaum law firm, who spoke about the Hy-Vee and Adler mixed-use development.

The Adler is the multi-family component of the project, which Price said has a little more than $28 million in assessed valuation.

“Our proposal is for a developer-backed bond or purchased bond so the town would not be at risk as far as repayment of the bond to pay for infrastructure costs associated with the development of this project,” Price said. 

Price said the Adler development will also benefit Hy-Vee as a result of infrastructure that would be built, such as road improvements, water line extensions and underground detention. 

Zionsville was the first Hy-Vee store the company had planned in Indiana. Earlier this month, Hy-Vee announced that it was building another store in Fishers at the corner of 136th Street and Olio Road near the Saxony development. 

The Zionsville Plan Commission voted during its Aug. 15 meeting to approve three separate petitions related to the Hy-Vee project. Those petitions were approved in a 7-0 vote during the meeting. 

One of the petitions was the approval of a primary plat for Hy-Vee on 26.36 acres into six lots, which are expected to be developed in the future. In addition, plan commission members also approved a second petition of a development plan for the grocery store encompassing 17.93 acres, while a third petition for a 4,150-square-foot convenience store and fueling station also received support from the commission. 

The company will have to come back to Zionsville to seek approval of several variances related to the Hy-Vee development project from the Zionsville Board of Zoning Appeals. Those variances include seeking approval to reduce the number of loading docks from 11 to five, said Roger Kilmer, town planner with the Community and Economic Development department. 

The company also plans to seek approval of a second variance to have outdoor storage, which currently isn’t permitted in the town’s general business zoning district, Kilmer said. Hy-Vee has not filed paperwork yet for the pair of variances it is seeking, he added.